Panel Analysis of the Impact from the Logistics Performance Index on the Value-Added Logistics Industry: The Significance of LPI Sub-Indicators

다국어 초록 (Multilingual Abstract)

Purpose: This study empirically evaluates the relationship between the Logistics Performance Index (LPI) and the economic performance of the logistics industry, specifically focusing on value-added logistics across top-performing countries.
Research design, data, and methodology: The analysis takes a balanced panel dataset of 20 countries with the highest LPI rankings for 2007, 2010, 2012, 2014, 2016, 2018, and 2023, which correspond to LPI publication years. Fixed-effects panel regression models are employed to examine the impact from the overall LPI and its six sub-indicators on logtransformed value-added logistics. Control variables included GDP per capita, total population, trade openness, urbanization rate, and land area. Yearly dummy variables are incorporated to control for temporal effects.
Results: Neither the overall LPI index nor any of its sub-components had as tatistically significant impact on value-added logistics. In contrast, structural factors such as GDP per capita, urbanization rate, and land area exhibited significant effects. The inclusion of dummy variables revealed that certain years (particularly 2016) had negative effects, possibly due to global economic downturns.
Conclusions: While the LPI is a useful indicator for assessing national logistics performance, it does not adequately capture the economic output of the logistics sector. Policymakers should thus consider broader structural factors and long-term development strategies, rather than focusing solely on performance metrics. This study contributes to the literature by shifting the focus from trade-centric evaluations to the LPI’s relevance in sectoral economic contributions.